Procurement leaders face lack of talent – Consultants filling the gap

Title: Bridging Procurements Talent Challenges: How Supply Management Consultants Can Fill the Gap

Labor shortages post pandemic have made it difficult for supply management leaders to attract talent required for their specific functions. The gap is already exposed in many organizations. Additionally, the evolving landscape of procurement presents an added layer of complexity with an impending shortage in new skilled professionals. As technology advances and roles within procurement advance, a pronounced lack of confidence in the future talent pipeline has become a pressing concern.

Challenges in Procurement Talent Acquisition

1. Competency Relevance: Most procurement leaders believe that there is a significant gap between the skillset of their current staff and their future procurement needs.
2. Skill Requirements: The adoption of new technology tools is changing the skill profile of procurement functions. In the coming years, the increasing use of standardization and self-service will reduce the need for many traditional buying functions. Category management with advanced analytics will become common.
3. Changing Nature of Procurement: CEOs must give procurement leaders a seat at the decision-making table. Rather than being a support function responsible for cost savings, procurement must take a leading role in managing risks, addressing crises, advancing sustainability, and improving quality.

5 Trends Shaping the World of Procurement

1. Geopolitical Tensions: Geopolitical conflicts have become the new normal and can directly impact sourcing and supply management. The impacts include higher operational costs, decreased supply chain reliability, lower production output, trade route blockages, and elevated freight costs.
2. Natural Disasters: There has been an exponential increase in the number of Natural disasters in recent decades. These events can severely harm operational assets and raw materials. Procurement actions can help mitigate these risks by emphasizing supply continuity and building redundancy in sourcing and manufacturing locations.
3. Inflation and Recession: The economic climate in the US and globally has become increasingly more unpredictable and volatile in recent years. Companies must be continually exploring ways to increase margins. Although companies can maintain margins through pricing strategies and productivity improvements, procurement levers are among the least disruptive ways to boost profits.
4. Climate Sustainability Goals: Governments worldwide are enacting strict decarbonization requirements. The US government has set a target of net-zero emissions by 2050. Businesses are setting sustainability goals associated with their supply chain (Scope 3 emissions). Procurement functions play an essential role in helping companies achieve their climate goals in many ways.
5. Next-Generation Technology:  The shortage of skilled labor and growing complexity of operations are driving the use of tech tools like artificial intelligence (AI), e-procurement systems, and Supplier Relationship Management (SRM) tools, just to name a few. Next-generation technologies can ensure efficiency, reduce human error, and free up management’s time.

Supply Management Consultants Bridge the Gap

Facing a talent shortage, corporate leadership turns to procurement consultants for assistance in tackling future uncertainties, ensuring a proactive and resilient approach to procurement in an ever-changing business landscape.

1. Future-proofing: Procurement consultants play a pivotal role in “future-proofing” the sourcing strategy. By anticipating shifts in supplier landscapes, regulatory frameworks, and global dynamics, they contribute to strategic sourcing that not only meets current needs but positions the company for sustained success amid evolving industry demands.
2. Technology Adoption: Guiding procurement functions in adopting cutting-edge technology tools, supply management consultants ensure that the workforce is equipped to leverage enhanced operational efficiency.
3. Strategic Risk Management: In the face of geopolitical conflicts, natural disasters, and economic uncertainties, consultants provide future-focused risk management solutions, ensuring company’s resilience and ability to navigate unforeseen challenges with strategic foresight.
4. Sustainability Integration: Consultants assist in integrating sustainability goals into procurement strategies, emphasizing supplier requirements, sourcing of sustainable materials, and reducing emissions across the supply chain.
5. Operational Excellence: Through ideation workshops and collaboration sessions, consultants drive operational excellence by identifying innovative ideas and strategies to boost profits and efficiency, facilitating a culture of continuous improvement.
6. Cost Optimization: Procurement consultants, equipped with insights into evolving market dynamics, can navigate future challenges to identify innovative cost-saving opportunities to ensure the company remains financially resilient.

In essence, hiring a supply management consultant plays a pivotal role that goes beyond addressing current competency gaps as the procurement function evolves. Consultants can strategically prepare the company to tackle future uncertainties, fill technology gaps, and achieve sustainability goals. Their contribution goes beyond immediate needs, fostering an environment of proactive adaptation that significantly enhances the overall success and competitiveness of the company.